Nvidia Could Dominate Mobile Computing For $40 Billion

Nvidia could receive an invaluable jump start in the mobile computing space. The Wall Street Journal reports that the company is in talks to buy Arm Holdings from owner, Softbank. The deal, which is said to be worth $40 billion, could be a major game changer in the tech industry.

Almost all mobile devices such as smartphones and tablets use ARM based processors. And if this deal goes through, Softbank would be handing Nvidia the golden goose of computing platforms. The intellectual property alone would allow the company the advantage it needs to take over, as the industry leader.

Now, Nvidia already has its Tegra platform, a system on a chip (SoC) for mobile devices. It uses ARM architecture for its CPUs, which include the ones in the Nintendo Switch. Up until this point, Nvidia has only dipped its toes into mobile computing. But the deal could allow the leader in PC graphical hardware, to bring that same know-who to smartphones.

Softbank, a multinational holding company purchased ARM in 2016 for $32 billion. Over the years, the Japanese company has been snapping up firms or investing heavily in them as part of its venture capitol funding. The goal, is to play the long game, which would allow it to profit from the gradual advancement of said companies.

However, Softbank’s investment portfolio hasn’t been doing too well, which includes the faux pas of betting big on WeWork. Now, the COVID-19 pandemic may have exacerbated the problem and the firm maybe looking to offload the British company (ARM), as a means to increase its cash reserves.